REVEALED: The Real Reason The Stock Market Has Had Such A Huge Rally

You'd think it would since A) Europe is a huge economy and B)
There have definitely been times when headlines out of Europe
caused a sharp market move in one direction or another. For
example, last Tuesday saw a huge late-day surge in U.S. stocks
after a
rumor was reported in The Guardian about a huge $2 trillion
bazooka getting cooked up.

However it's just not clear that ultimately U.S. markets have
ever been too concerned.

What are they concerned with? The U.S. economy.

The evidence is pretty clear that the market's rebound has been
the result of improved economic expectations.

First, lets just recap the latest market move. After a dismal
August and September, markets have been on a rocket ship since
early October.

Remember, the scene was pretty grim in September. Virtually
everyone was calling for a double dip, and even Bill Grossdowngraded
his expectations from "New Normal" (2% growth, 2% inflation)
to 0% growth.

But basically since then, there's been a pretty sharp turnaround
in the view of the U.S. economy.

For example, check out the Citigroup Economic Surprise Index,
which is a measure of how well the data is doing vs.
expectations. As you can see, the "beats" really started coming
in early August.